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You must keep separate records for each transaction, including: You may also want to keep other records such as wallet addresses. Their website contains helpful information, including free online calculators for income tax and Capital Gain Tax. The HMRC has recently clarified that staking rewards are taxed as income. The biggest crypto news and ideas of the day. Understanding types of wallets: Hot Wallet: Wallets stored on internet-connected devices such as a computer, mobile, or web are known as Hot Wallets. 12,570. The UI is one of the best in the crypto tax field, and in addition to handling tax reporting for the U.S., Australia, and Canada it also supports tax reporting for more than 20 other countries. The HMRC uses an average cost basis to calculate the cost on capital gains. Keep track of all of your wallets and record in which protocols youve staked money. I am quite overwhelmed as there are so many different variables with Cryptos. Identify, track and organize all of your crypto activity across hundreds of exchanges, blockchains and wallets with ease. Thank You! Calculate your cost basis for each crypto transaction. For capital gains, the first GBP 12,570 of profit is tax free for everyone. Called my tax accountant to warn him there will be some crypto and NFT stuff this year. To work out how much you need to pay, take your total taxable gains and deduct your tax-free allowance of GBP 12,300. PS: No, they did not give me any discounts to post this. Working out the pooled cost is different if there has been a hard fork in the blockchain. 9% or 2% depending on earnings. Investors in MicroStrategy, Tesla, Block and Coinbase need to consider how wild price swings will affect results, not only directly but indirectly due to complex tax accounting rules. To understand if you owe taxes, it's important to look at how you used your crypto. They cant replace accountants. Simply import details of any cryptocurrencies you have bought or sold from one of the supported trading exchanges, and add any spending or donations you might have made from your wallet, any mined coins, or income you have received.